Appendix B to Part 380
14:4.0.1.4.61.7.24.1.9 : Appendix B
Appendix B to Part 380 Appendix B to Part 380 - Public Charter
Operators's Surety Trust Agreement
This Trust Agreement is entered into between ___________
(charter operator) incorporated under the laws of ____________ with
its principal place of business being ______________________
(hereinafter called “Operator”), and ____________________(Bank)
with its principal place of business being____________________
(hereinafter called “Trustee”), for the purpose of creating a trust
to become effective as of the ______ day of ______, 20_, which
trust shall continue until terminated as hereinafter provided.
Operator intends to become a Public Charter operator pursuant to
the provisions of part 380 of the Department's regulations and
other rules and regulations of the Department relating to insurance
or other security for the protection of charter participants, and
has elected to file with the Department of Transportation such a
Surety Trust Agreement as will insure financial responsibility with
respect to all monies received from charter participants for
services in connection with a Public Charter to be operated subject
to part 380 of the Department's regulations in accordance with
contracts, agreements, or arrangements therefore.
This Surety Trust Agreement is written to assure compliance by
Operator with the provisions of part 380 of the Department's
regulations and other rules and regulations of the Department
relating to insurance or other security for the protection of
charter participants. It shall inure to the benefit of any and all
charter participants to whom Operator may be held legally liable
for any of the damages herein described.
It is mutually agreed by and between Operator and Trustee that
Trustee shall manage the corpus of the trust and carry out the
purposes of the trust as hereinafter set forth during the term of
the trust for the benefit of charter participants (who are
hereinafter referred to as “Beneficiaries.”)
Beneficiaries of the trust created by this Agreement shall be
limited to those charter participants who meet the following
requirements:
1. Those for whom Operator or Operator's agent has received
payment toward participation in one or more charters operated by or
proposed to be operated by Operator.
2. Who have legal claim or claims for money damages against
Operator by reason of Operator's failure faithfully to perform,
fulfill, and carry out all contracts, agreements, and arrangements
made by Operator while this trust is in effect with respect to the
receipt of monies and proper disbursement thereof pursuant to part
380 of the Department's regulations; and
3. Who have given notice of such claim or claims in accordance
with this Trust Agreement, but who have not been paid by
Operator.
The operator shall convey to Trustee legal title to the trust
corpus, which has a value of $_____ by the time of the execution of
this Agreement.
Trustee shall assume the responsibilities of Trustee over the
said trust corpus and shall distribute from the trust corpus to any
and all Beneficiaries to whom Operator, in its capacity as a Public
Charter operator, may be held legally liable by reason of
Operator's failure faithfully to perform, fulfill, and carry out
all contracts, agreements, and arrangements made by Operator, while
this trust is in effect with respect to the receipt of monies and
proper disbursement thereof pursuant to part 380 of the
Department's regulations in connection with said charters, such
damages as will discharge such liability while this trust is in
effect; Provided, however, that the liability of the trust
to any Beneficiary shall not exceed the charter price (as defined
in part 380 of the Department's regulations) paid by or on behalf
of any such Beneficiary; Provided, further, that there shall
be no obligation of the trust to any Beneficiary if Operator shall
pay or cause to be paid to any Beneficiary any sum or sums for
which Operator may be held legally liable by reasons of its failure
faithfully to perform, fulfill, and carry out all contracts,
agreements, and arrangements made by Operator in its capacity as
Public Charter Operator while this trust is in effect with respect
to the receipt of monies and proper disbursement thereof pursuant
to part 380 of the Department's regulations; and provided still
further, that the liability of the trust as administered by
Trustee shall not be discharged by any payment or succession of
payments hereunder, unless and until such payment or payments,
shall amount in the aggregate to $_____. Notwithstanding anything
herein to the contrary, in no event shall the obligation of the
trust or Trustee hereunder exceed the aggregate amount of
$_____.
Trustee agrees to furnish written notice to the U.S. Air Carrier
Licensing/Special Authorities Division, X-44, Office of
International Aviation, Department of Transportation, forthwith of
all suits or claims filed and judgments rendered (of which it has
knowledge), and of payments made by Trustee under the terms of this
trust.
The trust shall not be liable hereunder for the payment of any
damages hereinbefore described which arise as a result of any
contracts, agreements, undertakings, or arrangements for the
supplying of transportation and other services made by Operator
after the termination of this trust as herein provided, but such
termination shall not affect the liability of the trust hereunder
for the payment of any damages arising as a result of contracts,
agreements, or arrangements for the supplying of transportation and
other services made by Operator prior to the date that such
termination becomes effective.
Liability of the trust shall in all events be limited only to a
Beneficiary or Beneficiaries who shall within sixty days after the
termination of the particular charter give written notice of claim
to Operator or, if it is unavailable, to Trustee, and all liability
of the trust with respect to participants in a charter shall
automatically terminate sixty days after the termination date of
each particular charter covered by this trust except for claims
made in the time provided herein.
Sixty-one days after the completion of the last charter covered
by this Trust Agreement, the trust shall automatically terminate
except for claims of any Beneficiary or Beneficiaries previously
made in accordance with this Agreement still pending on and after
said sixty-first day. To the extent of such claims, the trust shall
continue until those claims are discharged, dismissed, dropped, or
otherwise terminated. After all remaining claims which are covered
by this Trust Agreement pending on and after the said sixty-first
day have been discharged, dismissed, dropped, or otherwise
terminated; Trustee shall convey forthwith the remainder of the
trust corpus, if any, to Operator.
Either Operator or Trustee may at any time terminate this trust
by written notice to: “U.S. Air Carrier Licensing/Special
Authorities Division, X-44, Office of International Aviation, U.S.
Department of Transportation, 1200 New Jersey Avenue SE, W-86-445,
Washington, DC 20590,” such termination to become effective thirty
days after the actual receipt of said notice by the Department.
In the event of any controversy or claim arising hereunder,
Trustee shall not be required to determine same or take any other
action with respect thereto, but may await the settlement of such
controversy or claim by final appropriate legal proceedings, and in
such event shall not be liable for interest or damages of any
kind.
Any Successor to Trustee by merger, consolidation, or otherwise,
shall succeed to this trusteeship and shall have the powers and
obligations set forth in this Agreement.
The trust created under this Agreement shall be operated and
administered under the laws of the State of _________.
In Witness Whereof, Operator and Trustee have executed
this instrument on the date(s) shown below.
Operator ____________ (signature) Date Name (typed or printed)
Title Trustee (signature) Date Name (typed or printed) Title [Doc.
No. DOT-OST-2014-0140, 84 FR 15941, Apr. 16, 2019]